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In early 2020 Molly paid $200,000 for a house built in 2000. She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which
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In early 2020 Molly paid $200,000 for a house built in 2000. She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010

User Schroedingers Cat
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4 votes

Answer:

$30,000

Step-by-step explanation:

Given:

Paid for purchase house = $200,000

Money spend on remodel the house = $30,000

Contribution in year 2010 real GDP = ?

We know that molly purchase a house that was built in the year 2000 means, the amount of house includes in the year 2000 GDP. So such amount does not include in the year 2010 GDP.

Therefore, the amount spends on remodeling the house will be included in the year 2010 GDP.

User Jeroen Heijmans
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